STMicroelectronics shares surge nearly 3%, leading the CAC 40

STMicroelectronics leading the CAC 40 in a buoyant semiconductor sector

STMicroelectronics gains 2.78% to €46.53 during the session, making it the strongest riser on the CAC 40 at midday. The movement is part of a positive dynamic across the entire sector: ASML Holding advances 2.20% and ASM International 1.61%, while on the American side, Nvidia gains 2.93% and Advanced Micro Devices 1.78%. The rest of the CAC 40, meanwhile, is virtually stalled (-0.06%), underscoring the distinctiveness of this sectoral rebound. Over one week, the stock shows a gain of 1.41%, but retains a decline of 25.88% over one month, a direct legacy of the drop following the publication of second quarter results on July 23rd.

Stretched valuation and analyst view revised, despite Q3 guidance at $3.70 billion

CIC Market Solutions revised its price target on STMicroelectronics to €79.65 from €91.15 previously, while maintaining a buy rating. At the current price of €46.53, this represents a theoretical upside potential of over 71% relative to this target, a sign that the recent correction has widened a significant gap with the levels targeted by the analyst. From a fundamental perspective, when publishing Q2 2026 results on July 23rd, the group had communicated guidance for the third quarter at $3.70 billion in revenue, with an expected gross margin of 37.0%. The company also anticipated revenue exceeding $4 billion in the fourth quarter.

According to the consensus of surveyed analysts, the stock is trading at approximately 39.6 times current fiscal year earnings, which remains elevated given the recent decline. Technically, the price remains well below the 20-day moving average (€53.41, gap of -12.88%) and the 50-day moving average (€59.77, gap of -22.15%), and the RSI at 33 reflects a persistent oversold configuration since the July selloff. The support level at €42.90 represents the next level to monitor in case of a turnaround.